Equitrust Life Insurance Company is a mid-sized carrier that specializes in fixed index annuities and single premium life insurance. They carry a B++ rating from AM Best and an A- from Standard & Poor’s, which means they’re financially stable with solid marks from major rating agencies. If you’re looking for competitive annuity bonuses and don’t mind working with a smaller company, Equitrust is worth considering.
If you’ve been researching annuities, you’ve probably come across Equitrust. They’re not a household name like some of the larger carriers, but they’ve carved out a niche with their fixed index annuity products. We’ve worked with Equitrust policies over the years, and there are some things you should know before you commit.
This review covers their current product lineup, financial ratings, and whether Equitrust makes sense for your retirement planning.
About Equitrust Life Insurance Company
Equitrust is based in West Des Moines, Iowa, and has been around since 2003. Here’s something that surprises a lot of people: Magic Johnson Enterprises now owns a controlling interest in the company. Yes, that Magic Johnson.
The company manages approximately $33.6 billion in assets. Most of those assets are investment grade (rated A or better), though a small percentage falls below that threshold. That’s worth noting because it can affect how rating agencies view the company’s overall financial strength.
Equitrust Financial Ratings
Let’s talk about what these ratings actually mean for you.
Equitrust holds a B++ rating from AM Best and an A- rating from Standard & Poor’s. Their Comdex score is around 50. If you’re not familiar with Comdex, it’s basically a ranking that compares insurance companies against each other on a scale of 1 to 100.
Here’s the honest take: the B++ from AM Best is considered “good” but not “excellent.” The A- from S&P is stronger and falls into the “strong” category. Many consumers prefer working with carriers rated A or higher across the board. That doesn’t mean Equitrust is risky, but it does mean they’re not in the same financial strength category as companies like Northwestern Mutual or MassMutual.
The Better Business Bureau gives Equitrust an A+ grade, which speaks to their customer service and complaint resolution, even though they’re not BBB accredited.
Equitrust Annuity Products
This is where Equitrust really shines. They offer a wide range of fixed index annuities designed for different goals. Let’s break them down.
Accumulation-Focused Annuities with Bonuses
If you want your money to grow and you like the idea of an upfront bonus, these are the products to look at.
MarketEdge Bonus Index offers one of the most aggressive bonus structures we’ve seen. You get a 20% to 23% bonus spread over your first three years: 8% to 11% of your premium in year one, plus 4% of your accumulation value on each of your first three contract anniversaries. The trade-off is a 10-year surrender period.
MarketPower Bonus Index gives you a 12% to 15% bonus on your premium in year one. It comes with a 14-year surrender schedule, which is longer than most. This product works best if you’re absolutely certain you won’t need the money for a long time.
MarketTen Bonus Index offers an 8% to 11% bonus on premiums paid during your first five years. The 10-year surrender period is more manageable, and this product includes a return of premium feature.
Accumulation-Focused Annuities without Bonuses
Not everyone wants a bonus product. The surrender charges on bonus annuities are typically higher, and the caps or participation rates might be lower to offset that bonus. If you’d rather skip the bonus and get more favorable crediting terms, consider these options.
MarketFive Index has the shortest surrender period at just 5 years. It accepts issue ages up to 90, making it one of the few options for older clients. Minimum premium is $10,000.
MarketSeven Index extends the surrender period to 7 years and includes a guaranteed accumulation value benefit. This gives you some downside protection if the index performs poorly.
MarketValue Index is a 10-year product that also includes the guaranteed accumulation value benefit. It accepts ages 0 to 85.
Income-Focused Annuities
Planning for retirement income? These products come with built-in income benefit riders.
MarketFuture Income Index is designed for people who want to grow their money now and take income later. You get a 10% bonus on first-year premiums, and your benefit base compounds at 8% annually for up to 10 years. At age 65, the single-life withdrawal percentage is 6.80%. The rider fee is 1.25% of your accumulation value annually.
MarketEarly Income Index works similarly but with a 20% benefit base bonus and different compounding structure: 7% annually for years one through five, then 4% annually for years six through ten. The age 65 withdrawal rate is 6.60%.
Bridge: The Annuity with Long-Term Care Coverage
This is a unique product. Bridge is a fixed index annuity that includes built-in long-term care coverage with guaranteed approval. No medical underwriting to worry about.
The LTC benefits are tax-free and payable for up to 60 months. You don’t need to submit receipts, which simplifies the claims process. There’s a 1% premium load and a monthly LTC rider charge, plus a $100 annual wellness rider fee.
Minimum premium for Bridge is $50,000, which is higher than their other products. Issue ages are 50 to 80.
SmartBoost Index
SmartBoost takes a different approach. Instead of an upfront bonus, it offers a 40% “boost” through an Enhanced Accumulation Value that vests over 10 years. You get 10% vested on each contract anniversary until you’re fully vested at year 10.
There’s no fee for this boost feature. Minimum premium is $10,000.
Multi-Year Guarantee and Fixed Annuities
If you want something simpler than an indexed product, Equitrust has options.
Certainty Select is a multi-year guarantee annuity. You pick your term (3, 5, 6, 8, or 10 years), and Equitrust locks in your interest rate for that period. It’s straightforward and predictable.
ChoiceFour is a traditional fixed annuity with a one-year interest rate reset. There are four contract variations available depending on whether you want an MVA (market value adjustment) feature or enhanced liquidity.
Confidence Income: Immediate Annuity
Need income right now? Confidence Income is Equitrust’s single premium immediate annuity. You can choose payments for a fixed period (5 to 20 years) or for life. Minimum premium is $30,000, and payments start right away.
Equitrust Life Insurance
Equitrust used to offer several life insurance products, but they’ve simplified their lineup. Today, they offer one product: WealthMax Bonus Life.
This is a single premium indexed universal life policy. You make one lump-sum payment, and you’re done. The policy includes a 12% to 15% bonus on your premium.
The cash value grows based on index performance (S&P 500 options are available), and you can borrow against it or take withdrawals. The policy includes an Accelerated Death Benefit Rider that covers terminal illness, nursing care confinement, and chronic illness at no additional cost until you file a claim.
There’s also a Longevity Benefit that lets you access your death benefit as monthly income if you’re age 85 or older and have held the policy for at least 15 years.
Issue ages are 45 to 80. Minimum premium is $10,000, and maximum face amount is $1,000,000 per client.
Who Is Equitrust Right For?
Equitrust makes sense if you’re looking for competitive bonus products and you’re comfortable with a mid-tier carrier. Their fixed index annuity lineup is impressive, especially the MarketEdge Bonus Index and the Bridge product with LTC coverage.
They’re probably not the best fit if financial strength ratings are your top priority. If you want an A-rated or higher carrier across all rating agencies, you’ll need to look elsewhere.
Frequently Asked Questions
Is Equitrust a good company?
Equitrust is a financially stable company with solid products. Their B++ AM Best rating is considered “good” and their A- from S&P is “strong.” If competitive annuity features matter more to you than top-tier ratings across the board, Equitrust is worth considering.
Does Equitrust offer term life insurance?
No. Equitrust focuses on permanent life insurance and annuities. Their only life insurance product is WealthMax Bonus Life, which is a single premium indexed universal life policy. If you need term coverage, you’ll need to look at a different carrier.
What are the surrender charges on Equitrust annuities?
Surrender charges vary by product. MarketFive Index has a 5-year schedule, while MarketPower Bonus Index has a 14-year schedule. Most products fall somewhere in between. Make sure you understand the surrender period before you buy, because early withdrawals can cost you.
Does Equitrust require a medical exam for their annuities?
No. Annuities don’t require medical underwriting. Even Bridge, their annuity with LTC coverage, offers guaranteed approval with no medical exam. Their WealthMax Bonus Life policy also offers simplified underwriting through their RightNow Underwriting program.
What is the minimum investment for an Equitrust annuity?
Most Equitrust annuities require a $10,000 minimum premium. Bridge, their LTC annuity, requires $50,000. Confidence Income, their immediate annuity, requires $30,000. The maximum across all products is $2,000,000.
Key Takeaways
- Financial ratings are solid but not top-tier – B++ from AM Best (“good”) and A- from S&P (“strong”).
- Annuity lineup is impressive – Multiple fixed index options with bonuses up to 23%, plus income-focused and LTC products.
- Life insurance is limited – Only one product (WealthMax Bonus Life), and it’s single premium only.
- Magic Johnson Enterprises owns a controlling interest – The company manages approximately $33.6 billion in assets.
- Surrender periods range from 5 to 14 years – Make sure you can commit for the full term before buying.
Want help figuring out if Equitrust is right for your situation? We can walk you through the options and compare them against other carriers. No pressure, just straight answers.
